La Verne : Reserve Fund to Be Utilized

The city will again dip into its reserve fund to pay for city services during the 1990-91 fiscal year, but will attempt to end such shortfalls in the future by asking voters to increase their property tax.

Though the budget approved by the City Council on Monday night was described as a “hold-the-line financial plan” by City Manager Martin Lomeli, it will require the city to draw $196,188 out of its $1.3-million reserve fund, the second year in a row that the city has dipped into its reserve.

Lomeli said the budget of approximately $21 million for the city and La Verne Redevelopment Agency is insufficient to cover increasing demands for services. The council voted unanimously to place an as yet-undrafted tax proposal on the November ballot.